Question 19 (3.3 points) An investment-grade bond has a risk than a speculative-grade bond. A) Lower default B) Lower interest rate C) Higher default D) Higher interest rate Question 20 (3.3 points) A firm is going to issue a 20-year bond with semi-annual coupon payments. The face value is $1,000 and the coupon rate is 5% per year. If the market requires an annual return of 6% on the bond, what should be the bond price? A) $884 B) $1,105 C) $926 D) $1,037 Question 21 (3.3 points) We have a zero coupon bond with a par value of $1,000, a maturity of 20 years, and a yield to maturity of 5%. If each period is one year, the price of the bond should be A) $325.12 B) $463.19 C) $376.89 D) $292.45 Question 22 (3.3 points) Holding other things equal, which one of the following bonds should face the lowe interest rate risk? A) A bond with a 10% coupon rate and a 7-year time to maturity B) A bond with a 5% coupon rate and a 4-year time to maturity C) A bond with a 10% coupon rate and a 4-year time to maturity D) A bond with a 5% coupon rate and a 7-year time to maturity